Types of Company Audit
Audit is conducted with the view to protect the interest of the shareholders. It is mandatorily required to conduct audit known as statutory audit. Depending upon various grounds like turnover, networth, operations etc various types of audits become applicable.
The primary objective of the auditor is to report to the owners whether the balance sheet gives a true and fair view of the Company’s state of affairs and the profit and loss A/c gives a correct figure of profit of loss for the financial year. The incidental objectives of auditing are detection and prevention of Frauds, and Detection and prevention of Errors.
There is a special arrangement for the audit of Companies where the equity participation by Government
is 51% or more named as ‘Audit of Government Companies’.
Here is another quiz on various types of company audits.